February 27, 2015 | Read Time: 3 minutes
Getting started with planned giving may seem daunting, but it doesn’t have to be. There are many things you can do to incorporate planned giving into what your organization already does.
We asked the experts about some common errors and misconceptions of those new to planned giving. Here are some things to avoid.
1. Skimping on marketing. If your organization accepts planned gifts, say it loud and proud.
Promoting that your organization is in the business of legacies is one of the most important things you can do, says Karen Gallardo, a planned-gifts fundraiser who has worked at the AARP Foundation, the Aspen Institute, and the Nature Conservancy.
Creating stand-alone planned-giving communications is not always necessary. Marketing the program can be as easy as including a sentence in other appeals that asks donors to consider giving to your organization in their estate plans.
2. Delaying your follow-up. “When donors are ready to make a planned gift, they are ready,” said Megan Contakes, a consultant with Integrated Direct Marketing, during a Chronicle webinar. “If you don’t call them back, they’re going to move on to the next organization.”
Show donors that the organization is interested by responding quickly to their requests for information, says Charlotte Meyer, director of planned giving at the Ocean Conservancy.
“This is a service that you’re providing to them,” she says. “You’re helping them make gifts that they’ve always wanted to make and won’t be able to make until they pass away.”
3. Being impatient and expecting short-term returns. With the pressure to secure gifts, fundraising can be stressful. But patience is key, says Peter Ticconi, senior director of gift planning at the Georgia Institute of Technology.
New planned-gift officers need to be particularly careful in determining when to ask a donor for support: “If you’re doing your job right, you hardly ever have to ask,” he says. Fundraisers, says Mr. Ticconi, need to share information without putting donors in a position where they feel pressured or defensive.
It’s tough to predict when organizations will receive the planned gifts, but chances are you’ll have to do some waiting.
And don’t worry if you don’t hear much at first. A majority of deferred-gift donors will not inform the organization in advance, says Jeff Lydenberg, vice president of consulting at PG Calc, a firm that provides planned-giving software, marketing, and consulting. His rule of thumb: For every donor who self-identifies, he assumes there are three more out there that he isn’t aware of.
4. Asking for planned gifts when you don’t have an endowment. Organizations that don’t have an endowment are going to have a tough time convincing donors to include them in their estate plans, Mr. Lydenberg says.
“If they think they’re going to make this gift and you’re just going to blow it the minute you get it, it’s not a very compelling argument—it’s not exactly a legacy,” he says. “It’s just there and then it’s not.”
If you do have an endowment, planned gifts are a great way to increase it, he says.
5. Letting the complexity bog you down. For some people, talk of planned giving immediately creates anxiety, but not all types of planned giving are complicated.
Bequests, for example, are a great starting place, Ms. Meyer says. For many, the donor simply signs a document or changes a beneficiary designation in a will.
“You don’t have to be afraid or nervous about letting the world know your organization accepts bequests,” she says. “You don’t need to have legal counsel. You don’t need to have a lot of expertise. You just need to let people know that you accept them.”
At the same time, don’t get in over your head. If you don’t have the specialized training to handle a charitable lead trust or charitable remainder trust, don’t talk about them in your newsletter.
